Billions of dollars, none of it taxed: ATO reveals the tech giants paying zero income tax

The Australian Taxation Office's transparency database for 2024-25 shows that Microsoft's datacentre business, Optus parent company Singtel and several large coal and gas firms reported zero income tax despite generating billions of dollars in Australian revenue, the Guardian reported. The disclosures cover more than one-quarter of big companies operating in Australia, many of them based overseas, that regularly pay no or little corporate tax, according to the ATO. Parliament requires the agency to publish tax information for any entity earning at least $100m in Australian income, though the ATO noted there can be legitimate reasons for a zero result, including losses or the use of deductions and offsets.

Microsoft's datacentre arm brought in $2.3bn in Australian revenue but reported no taxable income, while the company's separate computer and software business paid $160.6m in tax on more than $9.2bn in revenue. Singtel, which owns Optus, generated more than $8.3bn in total income in 2024-25 without paying tax, a shift from its status as a regular taxpayer before 2020.

Several other major earners also paid nothing: Brazilian-owned JBS Global Meat Holdings reported more than $4.8bn in revenue, the Inpex-led Ichthys LNG project near Darwin generated $9.7bn in income, energy retailer AGL earned $13.1bn, and New Zealand's Fonterra brought in more than $2.4bn in total income. Sony Australia ($1.6bn in revenue) and online retailer Kogan ($642m) likewise paid no tax, and Adani Mining's Carmichael thermal coalmine in Queensland has never paid tax since it opened in 2021. By contrast, Netflix's Australian operation paid $8.4m in tax on more than $1.4bn in local revenue, and TikTok Australia paid $17.3m in tax on $686.6m in revenue.

Jason Ward, principal analyst at the Centre for International Corporate Tax Accountability and Research, said many resource companies cut their tax bills by shifting profits to lower-taxing jurisdictions. "Singapore is the key place to shift profits to, and has been for some time," he said, noting the city-state's 17% official corporate rate and its negotiated tax breaks. Ward said companies use Singapore as a marketing hub, selling coal or LNG to a subsidiary there so the profit from the raw material is booked in Singapore rather than Australia. He added that technology firms often achieve similar outcomes by parking intellectual property in tax havens: "Sadly, it's pretty easy to do."

ATO acting deputy commissioner Michelle Sams said the agency is paying closer attention to digital businesses and supply chains. Sams said the ATO looks closely at whether tax paid in industries like datacentres reflects the level of economic activity happening in Australia.

A Microsoft spokesperson said the company pays all tax required under Australian law. Optus was contacted for comment on Thursday; the company has previously said its negative tax position stemmed from infrastructure investments and operating expenses. The ATO is pursuing a ruling meant to curb profit shifting that could raise large sums from tech firms, though it is expected to face legal challenges, while new media bargaining laws passed in August pave the way for levies on global platforms that fail to strike deals with Australian news outlets.